Polkadot on the Move: Will DOT’s Next Wave Take It Past $6?

Polkadot’s price chart follows an Elliott Wave pattern, signaling a possible rise to $6.02 if current momentum continues.

A 24-hour trading volume of $200.76M and a 3.50% price increase suggest renewed market interest in DOT.

With 1.57B DOT in circulation and no max supply cap, price movements may hinge more on demand than scarcity.

After consolidation and structured price movements, Polkadot (DOT) may soon see a bullish breakout. At the time of writing, DOT was trading at $4.70, up 3.50% over the last 24 hours. The current price movement looks like it could be an Elliott Wave which points to a possible fifth wave going towards $6.02.

Source: CoinMarketCap

Chart Structure Signals Possible Breakout

A technical chart analysis reveals a clear 1-2-3-4 wave formation, with the fourth wave forming a descending channel. The recent price move appears to be breaking out of that channel, which typically precedes the start of a fifth bullish wave. If this structure holds, DOT may be on track to test the $6.022 resistance level, marking a significant near-term upside.

Market Show Growing Interest Amid Stable Supply

The current market capitalization for DOT is $7.43 billion, increasing by 3.52% over the last day. Trading activity over the last 24 hours has jumped to $200.76 million, suggesting more people are interested in investing. The 2.69% volume-to-market cap ratio supports the idea of growing activity around the asset.

Despite the price movement, the circulating supply remains unchanged at 1.57 billion DOT. Polkadot does not have a capped max supply, which may influence long-term valuation differently compared to fixed-supply tokens.

Polkadot Nears Breakout Amid Stable Market Cap

The unlocked market cap is slightly higher than the current cap at $7.47 billion. Meanwhile, the fully diluted valuation (FDV) matches the market cap at $7.43 billion, suggesting there are no significant locked tokens that could impact short-term supply dynamics.

While the chart pattern suggests a potential upward continuation, traders and investors are advised to monitor volume confirmation and price stability above the descending channel. A clean break above $4.80 with sustained buying could solidify the bullish scenario. However, any failure to hold current levels may signal a retest of support near $4.39 or lower.

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